Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1 , you sold short one round lot ( i . e . , 1 0 0 shares ) of Four Sisters stock

On January 1, you sold short one round lot (i.e.,100 shares) of Four Sisters stock at $21 per share. On March 1, a dividend of $2 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $15 per share. You paid 50 cents per share in commissions for each transaction.
Required:
What is the value of your account on April 1?
Account value
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Investors Guidebook To Fixed Income Investments

Authors: Stuart R. Veale

1st Edition

0735205310, 978-0735205314

More Books

Students also viewed these Finance questions

Question

Discuss the history of human resource management (HRM).

Answered: 1 week ago